Biden’s Climate Initiative Has $400 Billion Budget Overrun

(ConservativeInsider.org) – The cost of President Joe Biden’s ambitious climate agenda, laid out in the Inflation Reduction Act (IRA), has ballooned significantly, according to a new report by the nonpartisan Congressional Budget Office (CBO). The agency now estimates the climate and energy provisions of the legislation will cost a staggering $428 billion more than initially projected, totaling approximately $828 billion over the next ten years.

This stark revision, representing a near doubling of the initial $400 billion estimate, raises questions about the long-term fiscal implications of the sweeping climate initiative. While proponents tout the act’s potential to accelerate the transition to a clean energy economy, critics express concerns about its impact on the national debt and budgetary outlook.

The CBO attributes the increased cost primarily to technical revisions and unforeseen factors influencing tax credit claims. A significant portion of the additional expense stems from revised electric vehicle tax credit expectations. The Environmental Protection Agency’s recent proposal for stricter emissions standards beginning in 2027 also contributes to the higher cost estimate.

Furthermore, the CBO report suggests that Treasury guidance allowing businesses to claim tax credits for leased electric vehicles without the same restrictions applied to individual buyers drove up costs. This unexpected surge in leased vehicles was not factored into the initial estimates.

Beyond the rising price tag of the climate initiatives, the CBO report painted a less-than-optimistic picture of the nation’s overall economic trajectory. Projecting a steady rise in the national deficit, the report predicts it will reach $2.6 trillion by 2034, representing 6.1% of GDP. These alarming figures evoke comparisons to periods of national crisis, echoing deficits experienced during World War II, the 2008 financial crisis, and the COVID-19 pandemic.

The report further projects that public debt will balloon to 116% of GDP by 2034 and continue to climb, reaching a historic high of 172% by 2054. This concerning trend is attributed to increasing mandatory spending and interest costs, which will outpace discretionary expenditure, revenue, and economic growth declines.